• AUD/USD dipped o Monday as risk-sensitive Australian dollar attracted sellers on fears that a tit-for-tat global trade war would send the global economy into a recession.
• U.S. President Donald Trump announced a broad set of reciprocal tariffs, primarily targeting China and its key trading partners.
• Concerns about the Chinese economy pushed the Australian dollar below 60 cents, marking its lowest point since the COVID-19 pandemic.
• The RBA held rates steady, citing global risks and waiting for data to determine if inflation will stabilize within the 2-3% target, while concerns over strong labor market growth fueling inflation remain.
• At GMT 06:38, The Australian dollar was last trading up 0.38% to $0.6003
• Immediate resistance is located at 0.6312 (50%fib), any close above will push the pair towards 0.6374(61.8%fib).
• Support is seen at 0.6258(38.2%fib) and break below could take the pair towards 0.6229(lower BB).
Recommendation: Good to sell around 0.6050 with stop loss of 0.6100 and target price of 0.5950
